Myriad Genetics, Inc. (MYGN): 5 FORCES Analysis [Nov-2025 Updated]

You're looking for the real story on Myriad Genetics' competitive footing as we close out 2025, and honestly, the landscape is tough. We see major insurance payers dictating the price of every test, which is why pharmacogenomics revenue dropped 20% in Q1 alone, showing just how much power customers wield. Plus, while high regulatory hurdles keep some folks out, the rivalry against players like Natera and Labcorp is intense, especially when Myriad Genetics' $818M-$828M revenue guidance looks small next to multi-billion dollar peers. The threat of substitutes like liquid biopsy is real, so you need to see how these five forces are squeezing the business right now.

Myriad Genetics, Inc. (MYGN) - Porter's Five Forces: Bargaining power of suppliers

When you're analyzing Myriad Genetics, Inc. (MYGN), you have to look closely at who supplies the essential components for their diagnostic tests. The bargaining power of these suppliers is a real constraint on profitability and operational flexibility.

Reliance on specialized reagents and equipment limits supplier options. Myriad Genetics, Inc. has explicitly stated in its filings that it depends on a limited number of third parties, and in some cases, single-source suppliers, for critical items like equipment, reagents, and specimen collection services. This dependency is significant because, honestly, the specialized nature of genetic testing means there aren't many vendors out there who can provide the exact gene sequencing equipment, content enrichment gear, or specialty reagents they need. If these supplies become unavailable or if a key vendor faces disruption, Myriad Genetics, Inc. may not be able to perform its tests on time, or perhaps at all.

Risk of disruption is high if a single-source supplier fails. That reliance on a small pool of vendors creates a tangible operational risk. The failure of just one single-source supplier could definitely have a disruptive effect on Myriad Genetics, Inc.'s business continuity. This isn't just theoretical; it's a structural vulnerability in their supply chain that requires careful management.

Suppliers of advanced sequencing technology hold moderate leverage. Competitors in the broader Next Generation Molecular Assay Market, such as Illumina Inc. and Thermo Fisher Scientific, are also key players in the ecosystem that supports advanced molecular assays. While Myriad Genetics, Inc. is a significant customer, these technology providers often control proprietary platforms, giving them leverage in pricing and terms for the necessary high-tech components.

To put some numbers around the cost side, Myriad Genetics, Inc. has shown some success in managing these input costs recently. For the third quarter of 2025, the cost of revenue decreased by $1.6 million compared to the prior year period, which the company attributed to reduced laboratory reagent and supply costs. This suggests that either they negotiated better terms or their volume mix shifted favorably, but it does show some cost control in that area.

Here's a quick look at the relevant cost data from the Q3 2025 report:

The power held by these specialized suppliers is further evidenced by the general market dynamics for the equipment they use. You see, comprehensive sequencing panels often require substantial upfront investments in equipment and reagents for any lab. This high barrier to entry for new suppliers solidifies the position of existing ones.

You should keep an eye on a few key areas related to supplier risk:

• Single-source dependency for specialized reagents.
• Availability of high-throughput sequencing equipment.
• Impact of global supply chain volatility on consumable costs.
• Contract renewal terms for core laboratory platforms.
• The ability to secure adequate specimen collection services.

Finance: draft a sensitivity analysis on a 10% cost increase for the top three reagent categories by next Tuesday.

Myriad Genetics, Inc. (MYGN) - Porter's Five Forces: Bargaining power of customers

You're analyzing Myriad Genetics, Inc. (MYGN), and the customer power side of the ledger is definitely flashing red, primarily due to the leverage held by large insurance payers. Honestly, when a single payer can cause a major segment revenue drop, you know their power is extreme.

Major insurance payers, like UnitedHealthcare, wield extreme power over reimbursement terms, which directly impacts Myriad Genetics' top line. We saw this play out sharply in the first quarter of 2025. The Pharmacogenomics revenue segment fell by a significant 20% in Q1 2025. This steep decline was directly attributed to UnitedHealthcare's decision to discontinue coverage for the GeneSight test, effective in that same quarter. This single event highlights the concentrated risk; CFO Scott Leffler noted there were no indications of risk to coverage from other payers following that decision, suggesting the power is concentrated among a few key entities.

The financial impact of this payer action is clear when you look at the overall results. Myriad Genetics' total revenue for Q1 2025 was $196 million, a year-over-year decline of 3%. The GeneSight test revenue specifically for that quarter was $31.0 million before the full impact of the coverage change was realized across the entire quarter's reporting.

Payers dictate the Average Revenue Per Test (ARPT) through the contract negotiation process, which is where the real leverage lies. When coverage is secured, the negotiated rate sets the floor for revenue generation on that test. We saw evidence of this pressure generally, as the average revenue per hereditary cancer test fell in Q1 2025. This dynamic means that even if testing volumes remain steady, a negative shift in payer contracts can immediately compress margins and revenue realization. It's a constant battle to expand coverage while defending existing rates.

For physicians and patients, the switching costs for tests that offer equivalent clinical utility or coverage can be low. While Myriad Genetics has proprietary tests, the competitive landscape shows alternatives exist, especially on price sensitivity for the end-user. For instance, some direct-to-consumer genetic tests were reported to cost as little as $249, which contrasts sharply with Myriad Genetics' reported pricing for multi-gene hereditary cancer panels, which ranged from $2700 to $4000. This massive price differential suggests that if a patient or physician can find a covered alternative, or is willing to pay out-of-pocket for a lower-cost option, the switching friction is not prohibitively high.

Here's a quick look at the immediate financial consequences tied to customer/payer dynamics in Q1 2025:

The power of these payers manifests in several ways that you need to track:

• Contract negotiation leverage over reimbursement rates.
• Ability to unilaterally discontinue coverage for specific tests.
• Setting the effective price ceiling for covered services.
• Driving down the Average Revenue Per Test (ARPT).

Finance: draft a sensitivity analysis on a hypothetical 10% ARPT reduction across the hereditary cancer portfolio by Friday.

Myriad Genetics, Inc. (MYGN) - Porter's Five Forces: Competitive rivalry

You're looking at a market where scale dictates staying power, and frankly, Myriad Genetics, Inc. is operating at a different weight class than its primary rivals. The competitive rivalry here is definitely fierce because the market for genetic testing-especially in hereditary cancer and prenatal diagnostics-is crowded with well-capitalized players. We see this immediately when you map out the revenue scale for fiscal year 2025 projections.

Myriad Genetics, Inc.'s reaffirmed 2025 revenue guidance sits in the range of $818M-$828M. To put that in perspective against the competition, you have to look at the multi-billion dollar entities that are aggressively pursuing the same patient populations and payer contracts. This revenue scale difference means Myriad Genetics, Inc. has less cushion for R&D investment or aggressive pricing actions compared to its larger peers.

The rivalry intensifies because competitors often leverage their scale to undercut on price or offer more comprehensive testing menus. It's a volume game, and when you're competing against companies like Labcorp, which posted Q3 2025 revenue of $3.56 billion, the pressure on Myriad Genetics, Inc.'s average selling prices (ASPs) is constant. You see this dynamic play out in the push for broader accessibility.

Rivals are actively competing on the breadth of their offerings, which directly impacts market share in key areas. Here's where the competitive battle lines are drawn:

• Broader gene panels offered by competitors.
• Aggressive pricing strategies on multi-gene tests.
• Faster turnaround times for critical results.
• Increased payer coverage negotiations leverage.

The intensity is particularly sharp across the hereditary cancer and prenatal testing segments. For instance, Natera, Inc. is reporting record growth in its Signatera molecular residual disease (MRD) units, processing over 202,000 clinical MRD tests in Q3 2025. That's a direct challenge to Myriad Genetics, Inc.'s oncology franchise. Also, Natera raised its gross margin guidance to 62% to 64% for 2025, showing operational leverage that smaller players struggle to match while fighting price wars. If onboarding takes 14+ days, churn risk rises, especially when a competitor is touting superior speed.

Myriad Genetics, Inc. (MYGN) - Porter's Five Forces: Threat of substitutes

You're looking at the landscape for Myriad Genetics, Inc. (MYGN) and wondering how easily a patient or physician could choose something else instead of one of their established tests. The threat of substitutes is definitely real, especially as the diagnostic field evolves rapidly.

Alternative diagnostic methods, like traditional pathology or imaging, still exist, though they often lack the specific genetic insights Myriad Genetics, Inc. provides. For context, Myriad Genetics, Inc.'s total revenue for the third quarter of 2025 was $205.7 million, and their full-year 2025 revenue guidance is between $818 million and $828 million. This shows that while molecular diagnostics are significant, a large portion of the overall diagnostic market still relies on non-genetic methods.

The rapid adoption of liquid biopsy and AI-driven diagnostics presents a material threat because these technologies offer less invasive alternatives with potentially faster turnaround times for certain applications. The United States liquid biopsy market was valued at $1.21 billion in 2024 and is expected to grow at a robust Compound Annual Growth Rate (CAGR) of 14.99% from 2025 to 2033, or alternatively, is anticipated to surge from $4.03 billion in 2025 to reach $7.05 billion by 2030 with an 11.8% CAGR. Myriad Genetics, Inc. is actively responding to this by entering a strategic collaboration with SOPHiA GENETICS in September 2025 to develop a global liquid biopsy companion diagnostic (CDx) test. Furthermore, Myriad Genetics, Inc. intends to commercially launch its first AI-enabled prostate cancer test, in partnership with PATHOMIQ, in the first half of 2026, indicating a defensive move into this area.

Competitor's multi-gene panels can substitute Myriad Genetics, Inc.'s proprietary tests, often driven by payer decisions. The clearest example of this substitution pressure is the impact on the GeneSight test. UnitedHealthcare's discontinuation of coverage for multi-gene panel pharmacogenetic testing, including GeneSight, was effective in the first quarter of 2025. This headwind caused Pharmacogenomics revenue to fall by 20% in the first quarter of 2025, even as GeneSight test volume in the third quarter of 2025 grew 8% year-over-year, showing the underlying volume resilience when coverage is present. Still, the payer action is a direct substitution mechanism.

In-house lab developed tests (LDTs) by large hospital systems are another substitute, representing decentralized testing options that bypass centralized commercial labs. While specific revenue data for LDTs directly competing with Myriad Genetics, Inc. is not publicly detailed, the market trend shows movement in this direction. For instance, Exact Sciences launched Cancerguard, a multi-cancer early detection test, as a laboratory-developed test (LDT) in the U.S., partnering with Quest Diagnostics for blood collection access. This shows major players are using the LDT route to offer comprehensive testing outside of Myriad Genetics, Inc.'s traditional channels.

Here's a quick look at how the substitute market (Liquid Biopsy) is positioned against Myriad Genetics, Inc.'s recent performance:

You should watch for how Myriad Genetics, Inc. integrates its new liquid biopsy CDx development with SOPHiA GENETICS, and how quickly competitors roll out their own AI-driven tools, especially since Myriad Genetics, Inc.'s own AI test is slated for a first-half 2026 launch.

• UnitedHealthcare discontinued GeneSight coverage in Q1 2025.
• GeneSight revenue was $38.7 million in Q3 2025.
• Myriad Genetics, Inc. reported Q3 2025 Adjusted EBITDA of $10.3 million.
• Myriad Genetics, Inc. is launching an expanded gene panel for MyRisk test later in 2025.

Finance: draft 13-week cash view by Friday.

Myriad Genetics, Inc. (MYGN) - Porter's Five Forces: Threat of new entrants

The threat of new entrants into the molecular diagnostics space where Myriad Genetics, Inc. (MYGN) operates is moderated by significant upfront requirements, though the market's growth potential draws attention.

High regulatory hurdles and the need for clinical validation create barriers. To maintain its position, Myriad Genetics, Inc. shows a commitment to this by incurring research and development expense of $113.4 million for the year ended December 31, 2024, up from $88.7 million in 2023. This spending underpins the scientific research and collaborations necessary for regulatory alignment and advancing product utility, such as the ongoing work on its Precise MRD test with institutions like MD Anderson Cancer Center. New entrants face the same time and capital demands to achieve the necessary clinical validation and regulatory clearances, such as FDA authorization, which is a definite cost sink.

Securing national payer reimbursement contracts is a defintely high hurdle. The difficulty is evident in the real-world impact on existing players; Myriad Genetics, Inc.'s Pharmacogenomics revenue fell 20% year-over-year in the first quarter of 2025 specifically due to UnitedHealthcare reducing coverage for its GeneSight test. Furthermore, the precision medicine ecosystem is complex, involving Laboratory Benefit Managers (LBMs) and varied payer policies. Billing and coding complexities, with many tests using broad CPT codes instead of unique identifiers, lead to inconsistent payments and administrative burden for any new entrant trying to establish a national payer footprint.

The molecular diagnostics market's projected growth attracts new capital, despite the barriers. While the outline mentions a 9.1% CAGR, recent analyses show the broader global molecular diagnostics market is projected to grow from $45.11 billion in 2025 to around $63.86 billion by 2034, representing a CAGR of 3.87%. Other projections show a CAGR of 8.20% from 2025-2034, reaching $45.24 Billion. The US market alone is projected to be valued at $8.7 billion in 2025. This substantial, albeit variably projected, growth signals significant potential returns for well-capitalized entrants willing to navigate the regulatory and reimbursement maze.

Large, established diagnostic labs (e.g., Quest) can expand into genetic testing easily. These incumbents possess existing infrastructure, scale, and established payer relationships that new, pure-play genetic testing companies lack. For instance, Quest Diagnostics raised its full-year 2025 revenue forecast to a range of $10.80 billion to $10.92 billion, with its quarterly sales rising 15.2% to $2.76 billion in the second quarter of 2025. This scale allows them to absorb the costs of expanding their offerings, as seen by LabCorp and Quest Diagnostics expanding into Direct-to-Consumer (DTC) offerings through acquisitions. The established players are already integrated into the healthcare system, which is a major advantage when competing against specialized firms like Myriad Genetics, Inc.

Here's a quick look at the scale of established competitors versus Myriad Genetics, Inc. as of mid-2025:

What this estimate hides is the specific cost for a new entrant to build out a comparable national laboratory infrastructure and secure contracts with major payers like UnitedHealthcare, which can easily exert pricing pressure, as evidenced by the 20% revenue drop Myriad Genetics, Inc. experienced in one segment.

The barriers to entry for Myriad Genetics, Inc.'s competitors can be summarized by the required operational components:

• Achieving high laboratory efficiencies to maintain gross margins near 70%.
• Navigating payer disputes over reimbursement rates.
• Securing positive clinical validation in peer-reviewed journals.
• Maintaining positive adjusted EBITDA, which was $10.3 million for Myriad Genetics, Inc. in Q3 2025.
• Managing the impact of coverage decisions from major national payers.